Shop/office

What would be the treatment of a vacant shop/office under the head income from house property?
Replies (4)
Quick Summary
This discussion clarifies the tax treatment of a vacant shop or office. If it's a personal asset, it's considered a capital asset and potentially taxable as a deemed let out property, though income may be nil due to vacancy. If it's a business asset, even if temporarily vacant, it's still considered in use for business and can be depreciated. The query also touches upon whether losses from vacancy can be deducted for deemed let out properties.

If it is personal asset of assessee, it is a capital asset being house property hence, if it is additional to Self occupied property then  taxable as Demeed let out property, however taxable Income would be nil due to vacancy.

If it is Business asset of assessee, i.e capital asset put to use in business,temporarily vacant i.e not generating any incom,still considered as put to use in business( As usage include both active and passive usage) therefore depreciable asset, depreciated @ 10% for building( excluding cost of land)

Hope it is clear.

 

Akshay Agaldiviti
akshay.agaldiviti @ gmail.com

 

If it is personal asset of assessee, it is a capital asset being house property hence, if it is additional to Self occupied property then  taxable as Demeed let out property, however taxable Income would be nil due to vacancy.

If it is Business asset of assessee, i.e capital asset put to use in business,temporarily vacant i.e not generating any incom,still considered as put to use in business( As usage include both active and passive usage) therefore depreciable asset, depreciated @ 10% for building( excluding cost of land)

Hope it is clear.

 

Akshay Agaldiviti
akshay.agaldiviti @ gmail.com

 

If it is personal asset of assessee, it is a capital asset being house property hence, if it is additional to Self occupied property then  taxable as Demeed let out property, however taxable Income would be nil due to vacancy.

If it is Business asset of assessee, i.e capital asset put to use in business,temporarily vacant i.e not generating any incom,still considered as put to use in business( As usage include both active and passive usage) therefore depreciable asset, depreciated @ 10% for building( excluding cost of land)

Hope it is clear.

 

Akshay Agaldiviti
akshay.agaldiviti @ gmail.com

 

Is there deduction of loss due to vacancy in case of deemed let out? I mean don't we pay tax on deemed let out property?

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